CCI nod to Bharti Airtel to increase stake in Indus Towers

The Competition Commission of India (CCI) has given a green signal to Bharti Airtel's proposal to boost its ownership in Indus Towers, following the latter's recent share buyback. Indus Towers serves as a passive telecom infrastructure provider, responsible for deploying, owning, and managing the essential infrastructure that supports various mobile operators.

The CCI, in a statement, said, “The Commission approves an increase in the percentage shareholding of Bharti Airtel Ltd (Bharti Airtel) in Indus Towers Ltd (Indus Towers) to 50.005 per cent pursuant to buy back of shares by Indus Towers."

Bharti Airtel revealed its intention in August to secure a stake exceeding 50 per cent in Indus Towers, contingent upon the completion of the telecom infrastructure company's ongoing share buyback scheme, valued at Rs 2,640 crore.

On August 14, Indus Towers initiated the buyback of over 5.67 crore shares priced at Rs 465 each, which represents about 2.107 per cent of the company’s total paid-up capital. According to exchange data, Bharti Airtel currently holds a 50 per cent stake in Indus Towers.

The competition watchdog, in a separate announcement, has also granted approval for Luxembourg-based CVC Capital Partners to acquire Aavas Financiers, a financial services company. Aavas Financiers operates as a non-deposit-taking housing finance company, registered with the National Housing Bank, and specializes in home loans, business loans for MSMEs, and loans against property.

"The proposed transaction relates to the acquisition of shares and control by the Aquilo House Pte Ltd (Acquirer) in Aavas Financiers (Target) pursuant to the share sale agreements executed amongst the Acquirer, the Target and certain existing promoters/ promoter group of the target," said CCI, in another statement.

In August, Aquilo House revealed that it had finalized agreements to acquire a 26.47 per cent equity stake in Aavas Financiers from Lake District Holdings (linked to Kedaara Capital), Partners Group ESCL, and Partners Group Private Equity (Master Fund), LLC. This acquisition necessitated the buyer to initiate an open offer in line with SEBI's Substantial Acquisition of Shares and Takeovers (SAST) guidelines.

According to SEBI regulations, CVC Partners must publicly announce an open offer because their shareholding surpasses the 25 per cent threshold. Transactions that exceed this limit require regulatory approval to maintain fair competition and prevent unethical business practices in the market